REG - Neometals Ltd - Quarterly Activities Report

NeometalsAnnouncement

30/10/2023 07:15

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RNS Number : 6238R  Neometals Ltd  30 October 2023

 

30 October 2023

 

Neometals Ltd

("Neometals" or "the Company")

 

Quarterly Activities Report

For the quarter ended 30 September 2023

 

Highlights

 

CORPORATE

• Cash balance A$14.2 million, investments of A$22.7 million and no debt.

 

CORE BATTERY MATERIALS BUSINESS UNITS

Lithium-ion Battery ("LIB") Recycling (50% NMT via Primobius GmbH, an
incorporated JV with SMS group GmbH)

• Awarded purchase order from Mercedes-Benz for 2,500tpa LIB shredding
'Spoke' plant, SMS mobilised subsequent to quarter end and award of matching
refinery 'Hub' expected DecQ 2023;

• Engineering Cost Study results for 21,000tpa integrated Spoke and Hub
indicate potential for the main product, lithium, to be in the lowest cost
position globally; and

• First national phase patent granted in Australia,16 other national phase
patents are at various stages of prosecution globally.

 

Lithium Chemicals (Co-funding Pilot Plant with Bondalti Chemicals SA (and
related entity) via Reed Advanced Materials Pty Ltd ("RAM") (70% NMT, 30%
Mineral Resources Ltd)

• Completion of purification stage of pilot test work program at SGS in
Canada. Commencement of electrolysis and product crystallisation stage
expected in November 2023; and

• Pilot activities being co-funded by Bondalti Chemicals SA with future
works to fall under new co-operation agreement covering planned demonstration
and commercial plant activities.

 

Vanadium Recovery ("VRP") (72.5% NMT via Recycling Industries Scandinavia AB
("RISAB"), an incorporated JV with Critical Metals Ltd), Technology 100% NMT
via Avanti Materials Ltd)

• Progressed project financing activities and secured 'take or pay' offtake
agreement with Glencore International AG for 100% of vanadium production at
market linked pricing without forward sales.

• Subsequent to the end of the quarter Neometals providing notice to its
partner in the Finnish Vanadium Recovery Project ("VRP1") of its wish not to
proceed with construction; and

• Commercialisation of the VRP technology will now be conducted under a
technology licensing business model.

 

UPSTREAM - MINERAL EXTRACTION

Barrambie Titanium and Vanadium ("Barrambie") (100% NMT)

• Metallurgical test-work, regional exploration, native title, environmental
and water activities advanced;

• Offtake negotiations discontinued with Jiuxing given inability to agree
mutually acceptable terms in relation to offtake and equity funding; and

• Ongoing engagement with third-party titanium producers and mining services
companies in relation to offtake, equity investment and contract mine-to-port
solution.

Company Overview

Neometals has developed and is commercialising three environmentally-friendly
processing technologies that produce critical and strategic battery materials
at lowest quartile costs with minimal carbon footprint.

Through strong industry partnerships, Neometals is demonstrating the economic
and environmental benefits of sustainably producing lithium, nickel, cobalt
and vanadium from lithium-ion battery recycling and steel waste recovery. This
reduces the reliance on traditional mine-based supply chains and creates more
resilient, circular supply to support the energy transition.

The Company's three core business units are exploiting the technologies under
principal, joint venture and licensing business models:

·      Lithium-ion Battery ("LiB") Recycling (50% technology) -
Commercialisation via Primobius GmbH JV (NMT 50% equity). All plants built by
Primobius' co-owner (SMS group 50% equity), a 150-year-old German plant
builder. Providing recycling service as principal in Germany and commenced
plant supply and licensing activities as technology partner to Mercedes-Benz.
Primobius targeting first commercial 50tpd plant offer to Canadian company
Stelco in DecQ2023;

·      Lithium Chemicals (70% technology) - Commercialising patented
ELi™ electrolysis process, co-owned 30% by Mineral Resources Ltd, to produce
battery quality lithium hydroxide from brine and/or hard-rock feedstocks at
lowest quartile operating costs. Co-funding Pilot Plant trials in 2023 with
planned Demonstration Plant trials and evaluation studies in 2024 for
potential 25,000tpa LiOH operation in Portugal under a JV with a related
entity of Bondalti, Portugal's largest chemical company; and

·      Vanadium Recovery (100% technology) - aiming to produce
high-purity vanadium pentoxide from processing of steelmaking by-product
("Slag") at lowest-quartile operating cost. Targeting partnerships with steel
makers and participants in the vanadium chemical value chain under a low-risk,
low-capex technology licensing business model.

Figure 1: Location map of Neometals' Projects together with partner
developments

Core Battery Materials Business Units
   Lithium-ion Battery Recycling

   (Intellectual Property via ACN 630 589 507 Pty Ltd- NMT 50%, SMS
   50%)
   Commercialising via Primobius GmbH, NMT 50% SMS group GmbH 50%

Primobius GmbH ("Primobius") is the 50:50 incorporated joint venture
established in 2020 to co-fund the commercialisation of the lithium-ion
battery recycling technology ("LIB Recycling Technology") originally developed
by Neometals.

The LIB Recycling Technology recovers materials contained in LIB production
scrap and end-of-life cells that might otherwise be disposed of in land fill.
Current LIB recycling processes predominantly rely on high carbon emission
pyrometallurgy processes. Primobius' two stage process recovers nickel,
cobalt, lithium and manganese battery materials (and physically recovers
metals and plastics) into saleable products that can be reused in the LIB
supply chain. The LIB Recycling Technology prioritises maximum safety,
environmental sustainability, and product recoveries, to support the circular
economy and decarbonisation.

 

Figure 2: High level flowsheet showing the movement of materials from
Shredding and Beneficiation ('Spoke') through to refining ('Hub') stages for
the LIB Recycling Technology

The LIB Recycling Technology comprises two stages:

1.  "Spoke" - Comprising of LIB receipting, sorting, discharging, disassembly
together with shredding and separation, to physically separate all of the
components of LIBs received, by metal casings, electrode foils, plastics and
active battery materials; and

 

2.  "Hub" - Comprising of leaching, purification, and crystallisation of the
active materials suitable for use in production of LIB precursor, via a
hydrometallurgical refining process.

 

During the quarter the LIB Recycling Technology IP holding company ACN 630 589
507 Pty Ltd received its first national phase patent granted in Australia,16
other national phase patents are at various stages of prosecution globally.

Primobius Status

Primobius' current business model contemplates the following revenue sources:

1.  Hilchenbach LIB disposal fees (for LIBs supplied by multiple waste
aggregators delivering predominantly whole modules);

 

2.  Sale of products from the Hilchenbach Spoke (metallic scrap, chemical
intermediates and chemicals purchased by various recyclers and smelting
customers); and

 

3.  Mechanical plant and equipment package supply (Stelco and Mercedes) and
associated technology licensing royalties.

Hilchenbach Operations

The Spoke section of the demonstration plant in Hilchenbach Germany
("Hilchenbach Spoke") continues its ramp up to the facility's maximum permit
capacity of 9tpd of LIBs.

The Hilchenbach Spoke is providing commercial LIB disposal services and the
hydrometallurgical refinery 'Hub' continues to operate as a demonstration
plant. Namely, the Hub is being utilised for discrete customer trials that
support flowsheet optimisation and generate product samples.

During the quarter, the Hilchenbach Spoke continued to produce intermediate
mixed nickel/cobalt product ("Black Mass"). The typical LIB contains
approximately 48% Black Mass which Primobius is currently recovering at high
levels and selling to a number of global offtakers on a spot basis with
pricing set according to nickel and cobalt content. Black Mass feedstock for
Hub trials is diverted from the Spoke instead of being sold.

 

Business Development

Primobius' key near-term commercial agreements are summarised below:

• A Cooperation Agreement with Mercedes-Benz's ("Mercedes") ("Mercedes
Cooperation") for the engineering, equipment supply and installation for a
2,500tpa fully integrated, closed-loop recycling plant, 5 year research,
collaboration and development of an industrial-scale solution for Mercedes 1 
(#_ftn1) ; and

• Technology licensing and joint venture option agreements with a subsidiary
of Stelco Inc. ("Stelco") ("Stelco Agreements") which plans to secure large
volumes of end-of-life vehicles in North America for scrap steel and recycle
LIBs, with a first proposed 21,000tpa integrated operation ("Stelco Spoke"
followed by "Stelco Hub") at Stelco's Hamilton Works, Ontario, Canada 2 
(#_ftn2) .

 

Activity Summary

During the quarter, Primobius made significant commercial and development
progress. It received its first plant package purchase order which has
underpinned a growing order book under the Company's preferred plant supply
and technology licensing/royalty business model.  The period also marked the
fifth quarter of modest revenue generation from the Hilchenbach Spoke and from
front-end engineering and design services rendered to Primobius' customers in
preparation for the offer and award of further recycling mechanical plant and
equipment package supply agreements.

Significant activities comprised:

Technical

• Successful completion of Engineering Cost Study ("ECS") results for
21,000tpa integrated Spoke and Hub indicated potential for the main product,
lithium, to be at the lowest cost position globally after co and by-product
credits. The Hub is designed to process 12,000tpa of concentrate comprised of
the anode and cathode materials ("Black Mass") arising from the processing of
21,000tpa of LiB modules and cells in the Spoke; and

• Post the quarter, new lithium recovery flowsheet results improved lithium
yields from >83% to >93% from trials that produced lithium fluoride
("LiF") product with +95% purity. This lithium flowsheet process improvement
can replace Primobius' current lithium solvent-extraction circuit which
produces lithium sulphate and is expected to reduce both operating and capital
costs. Importantly, Primobius has received strong interest in its LiF product
from the lithium electrolyte supply chain and will be providing samples under
material test-work agreements with leading Chinese precursor and electrolyte
manufacturers;

 

Table 1: Key Hub and Spoke ECS Metrics

 

 Metrics                                                                                                                Shredding Spoke                       Refining Hub

 Hub Annual Throughput / Capacity                                                                                       21,000tpa                             12,000tpa Black Mass 3  (#_ftn3) feed
 Hub Annual Production 4  (#_ftn4) :                                                                                    12,000tpa Black Mass                  9,300tpa

   Hydrated nickel sulphate: NiSO4.6H2O(s)                                                                                                                    4,300tpa

   Hydrated cobalt sulphate: CoSO(4).7H(2)O(s)                                                                                                                1,600tpa

   Lithium fluoride: LiF(s)                                                                                                                                   7,000tpa (liquid)

   Manganese sulphate: 32% w/w  MnSO4(aq)                                                                                                                     40tpa

   Copper metal/cathode                                                                                                                                       23,400tpa

   Ammonium sulphate: (NH(4))(2)SO(4)(s)
 Capital Cost (including 20% Contingency for Spoke and 15% Contingency for                                              €102.5M 6  (#_ftn6) (US$113.5M)(6)    €275M (US$303M)
 Hub) 5  (#_ftn5)
 Annual Operating Costs                                                                                                 €27.1M (US$30M)                       €56M (US$61M)
 Unit Operating Costs                                                                                                   €1,292(9) (US$1,430)(6)               €2,644/tpa (US$2,926/tpa) of LiB fed into a matching Primobius Spoke
 Workforce                                                                                                              239                                   82

 

                Figure 3: Revenue by Recovered Elements in 1 Tonne of Spoke Feed

Figure 4:  Lithium Cost Curve (2025). Key Production and Price assumptions
used were: Nickel 2,095tpa/US$22,450/t, Cobalt 913 tpa/US$33,420/t, Annual
OpEx US$91.5, LCE equivalent: 2,272tpa

Commercial

• Primobius awarded a purchase order from Mercedes for 2,500tpa LIB
shredding 'Spoke' plant to be installed at Mercedes Kuppenheim works;

• Primobius awarded a purchase order to SMS group for the Mercedes 'Spoke'
plant, SMS have commenced construction of the equipment off-site;

• Post the quarter SMS mobilised to site and commenced assembly of site
office and workshops in preparation for installation activities scheduled to
commence in the December quarter;

• Finalisation of offer to Mercedes for the Kuppenheim Hub plant package;
and

• Ongoing business development activities to build a global pipeline of
potential future recycling plants.

 

Figure 5: Artist rendering of Mercedes-Benz Battery Recycling building housing
the 2,500tpa plant from Primobius

 

Figure 6: 3D rendering of Mercedes' hydrometallurgical refinery 'Hub' at
Kuppenheim

 

 

Figure 7: LIB Recycling Indicative Timeline

 

Corporate

• Continued recruitment activities to expand the Primobius technical,
operational, commercial and management teams in line with corporate milestones
and to be able to offer mechanical plant and equipment package supply
contracts as demand grows;

• Appointment of dedicated Primobius CEO, Dr Michel Siemon on 23 August
2023, Dr Siemon is Head of Corporate Development at SMS group; and

Appointment subsequent to the quarter end of former Mercedes and VW electric
vehicle and battery recycling expert, Christian Reiche to lead Neometals' LiB
recycling activities.

 

 

 

 

 

 

Figure 8 - LHS, newly appointed Primobius CEO, Michel Siemon and RHS Neometals
newly appointed 'Head of Recycling', Christian Reiche

 

 

   Lithium Chemicals

    (Intellectual Property via Reed Advanced Materials Pty Ltd ("RAM") - NMT
   70%, Mineral Resources Ltd 30%)

   RAM co-funding pilot scale trials with Bondalti Chemicals SA (and related
   entity)

Neometals, through RAM, is commercialising its proprietary process (ELi
Processing Technology ("ELi™")) to produce lithium hydroxide from lithium
chloride solutions using electrolysis. Neometals has used ELi™ to convert
lithium chloride solutions produced from both natural spodumene and brine
feedstocks at semi-pilot scale. ELi™ has the flexibility to produce lithium
hydroxide and lithium carbonate and at a significantly lower operating cost
than for conventional commercial production processes. ELi's key economic
advantage lies in the potential to replace costly, imported bulk reagents for
traditional carbonation and causticising processing steps with electricity and
low-cost internally generated reagents. RAM holds 17 granted patents in the
hard rock and brine producing countries and has a further 14 pending patent
applications.

 

Figure 9: Schematic showing a comparison of the conventional flowsheet for

the production of lithium hydroxide from brines with the patented Eli™
process

 

A feasibility study in 2016 indicated the potential for ELi™ to
significantly reduce the cost and carbon footprint associated with production,
transport and consumption of the carbon-intensive reagents that are used in
conventional lithium processes. An engineering and cost study ("ECS") in 2023
further confirmed industry-leading economics with the potential for step
change in operating costs to developers of lithium brine sources using ELi™.

 

 

Figure 10: ELR ECS Opex comparison showing significantly reduced operating
costs to generate LHM when compared to conventional Brine and spodumene routes
(noting that conventional Brine processing is a two-stage process with lithium
carbonate ("LC") produced before additional processing into LHM.

 

Estarreja Lithium Refinery Project

In the December quarter 2021, RAM entered into a binding Co-operation
Agreement ("ELi Co-operation") with Portugal's largest chlor-alkali producer,
Bondalti Chemical SA. Bondalti is part of the Jose De Mello Group, one of
Portugal's largest conglomerates, family controlled and founded in 1898.
Bondalti and RAM have co-funded evaluation activities to construct and operate
a commercial-scale lithium refinery ("Estarreja Lithium Refinery" or "ELR"")
adjacent to Bondalti's chlor-alkali operations in Estarreja, Portugal.

The evaluation activities completion of an engineering cost study ("ELR ECS")
and pilot-scale metallurgical test-work ("Pilot Trials"). The Pilot Trials are
in progress and expected to be well advanced in the March Q 2024.

Table 2: Key ELR ECS Metrics*

                                         ECS Metrics (100% ownership basis)
 Annual Production                       25,000tpa LHM
 Annual Throughput                       80,000 tpa Brine @ 6% Li
 Average Operating Cost (±15%)**         €1,768/t (US$1,945/t) LHM
 Total initial capital costs (±15%)***   €405M (US$446 M)
 Capital Intensity****                   €16,200/t (US$17,840/t) LHM capacity

 

 * (for full details refer to Neometals ASX announcement headlined 'Portugal
 Lithium Refinery Study Confirms Step-change Opex of ELi(TM) Technology"
 released on 26(th) April 2023).

 ** from receipt of 6% Li brine concentrate to packaged high purity "battery
 grade" lithium hydroxide product, excluding by-product credits

 *** Total of direct and indirect capex including 15% contingency, EPC fees and
 design post-Class 3

 **** Based on total capex and 25,000tpa LHM capacity

 

 

 

 

With the original planned pilot activities nearing conclusion and Bondalti's
parent incorporating a dedicated lithium subsidiary, Lifthium Energy SA, the
Parties have allowed the current ELi Cooperation to lapse.  RAM and Bondalti
are continuing to co-fund the agreed pilot plant activities while a new
cooperation agreement is being drafted in parallel 7  (#_ftn7) . The new
agreement contemplates the construction of a Demonstration Plant and Front-End
Engineering and Design Study ("ELi™ FEED Study") and key commercial terms
for technology licensing and potential joint operation.

Activity Summary

The ELR opportunity was progressed during the quarter with strong focus on
technical studies, pilot trial activities and sourcing feedstocks for pilot,
future demonstration and longer-term commercial operations.

Technical

• As part of the ELR evaluation, the parties are implementing a phased
technical validation plan including pilot evaluation ("ELi™ Pilot"). The
ELi™ Pilot comprises 3 stages being 'purification', 'electrolysis' and
'crystallisation'. The purification test-work at SGS in Canada (processing
concentrated and purified salar brine (6% Li basis)) was materially complete
by the end of the quarter and preparations are underway for the follow-on
electrolysis stage commencing in November 2023; and

• Demonstration plant (planned for construction at Bondalti's Estarreja
chlor-alkali operation) electrolyser design work was advanced in alignment
with the ELi™ Pilot flowsheet.

Commercial

·      Commercial dialogues were progressed with aspiring and existing
producers of lithium brine concentrates to develop terms of supply to the ELR.
This included ongoing discussions with the commercial brine source feed
suppliers to the planned Demonstration Plant;

·      Commercial discussions progressed with potential lithium
hydroxide offtake partners for the ELR; and

·      Commercial discussions with potential ELi licensees in areas
outside Portugal and Spain.

 

 

Figure 11: Indicative Timeline for the ELR

 

 

 

   Vanadium Recovery

   (Intellectual Property via Avanti Materials Ltd - NMT 100%)

   Commercialising via Recycling Industries Scandinavia AB ("RISAB") - 72.5% NMT

Neometals is commercialising its sustainable, proprietary vanadium recovery
process ("VRP Technology") to produce vanadium products for battery and
aerospace alloying applications from stockpiles of vanadium-bearing steel
making by-product.  The unique selling points of the technology are:

•    Potential lowest-quartile operating costs 8  (#_ftn8) from
processing steelmaking slags without upstream mining costs/risk/carbon
footprint;

•    A processing flowsheet utilising conventional equipment at
atmospheric pressure, mild-temperatures, and non-exotic materials of
construction; and

•    Likely very low or net zero greenhouse gas footprint given the
absence of mining and a processing route requiring the mineral sequestration
of CO(2) into a potentially saleable carbonate by-product which sequesters
CO(2).

Figure 12: High level flowsheet of Neometals VRP Technology:

 

 

 

Figure 13: 2022 Vanadium Cost Curve.

 

Figure 14: Carbon Footprint for VRP1 at Pori, Finland highlighting benefit of
sequestering CO2 in by-product.

 

RISAB Status

Neometals and unlisted Scandinavian-focused explorer, Critical Metals Ltd
("Critical"), are jointly evaluating the feasibility of recovering high-purity
vanadium pentoxide ("V(2)O(5)") from high-grade vanadium-bearing steel
by-product ("Slag") in Scandinavia. Neometals has funded and managed
evaluation activities earning a 72.5% interest in an incorporated JV
(Recycling Industries Scandinavia AB ("RISAB")) with Critical.

In March 2023, Neometals announced results of a feasibility study ("VRP1 FS")
based on the AACE® Class 3 engineering cost study ("VRP1 ECS") completed by
Nordic engineering group Sweco Industry OY. The VRP1 ECS confirmed the
potential for lowest-quartile operating costs in a high-purity vanadium
chemical operation with a low-to-negative carbon footprint (for full details
refer to Neometals ASX announcement headlined "Vanadium Recovery Project
Delivers Strong Feasibility Results" released on 8(th) March 2023).

RISAB engaged leading Nordic investment banks SEB and Aventum Partners to lead
the equity and project financing processes respectively. Strong interest has
been received from investment and commercial banks in Europe with debt due
diligence led by the European Investment Bank and a preferred banking
syndicate.

A take-or-pay offtake agreement has been struck with Glencore International AG
("Glencore") and the project is at the financing stage ahead of a decision to
construct and produce high-purity vanadium pentoxide ("V(2)O(5)") from
high-grade vanadium-bearing steel making by-product ("Slag") under a feedstock
supply agreement with SSAB EMEA AB and SSAB Europe Oy (collectively "SSAB").

Post the quarter, Neometals provided a status update on RISAB's progress
towards securing the VRP1 debt and equity financing required to make a FID. It
subsequently has provided notice to its partner in the VRP1 that it does not
wish to proceed with the construction of a slag processing facility.

 

Neometals has requested that RISAB consider alternative methods of funding,
including outright sale of the VRP1 project holding company. However,
Neometals intends to revert to a technology licensing business model to
commercialise its proprietary vanadium recovery process ("VRP Technology").

 

 
Upstream - Mineral Extraction
   Barrambie Titanium/Vanadium Project

   (Neometals 100%)

The Barrambie Vanadium and Titanium Project in Western Australia ("Barrambie")
is one of the largest vanadiferous-titanomagnetite ("VTM") Mineral Resources
globally (280.1Mt at 9.18% TiO(2) and 0.44% V(2)O(5))*, containing the world's
second highest-grade hard rock titanium Mineral Resource (53.6Mt at 21.17%
TiO(2) and 0.63% V(2)O(5)) and high-grade vanadium resource (64.9Mt at 0.82%
V(2)O(5) and 16.9% TiO(2)) subsets (referred to as the Eastern and Central
Bands respectively) based on the latest Neometals 2018 Mineral Resource
Estimate 9  (#_ftn9) .

Barrambie is located approximately 80km north-west of Sandstone in Western
Australia and the Mineral Resource is secured under a granted mining lease.
Neometals secured environmental approval in 2012 to mine and construct a 3.2
Mtpa processing plant (Ministerial Statement 911), extended the timeframe for
implementation in 2019 (Ministerial Statement 1119) and is currently in the
process of securing a further extension of the timeframe for project
implementation. The project also has a granted mining proposal to extract
approximately 1.2Mtpa of mineralisation.

The current stage of development sees Neometals deeply engaged with
third-party titanium producers and mining services companies in relation to
offtake, equity investment and contract mine-to-port solutions.

Activity Summary

During the quarter the following activities were undertaken:

 

Technical

·      Metallurgical variability assessments completed in relation to
comminution with corresponding beneficiation work pending;

·      Regional exploration completed across Barrambie tenure to
maintain tenements in good standing

·      Preparations were undertaken for seismic surveys, rehabilitation
of drill lines, soil analysis and rock chip sampling, and a geological
database review; and

·      Flora and vegetation studies were completed during the quarter
and a final report is spending. Additionally, a field program to assess the
potential of the saline water prospects was completed with a targeted water
exploration program to follow. Baseline monitoring including dust, weather and
water table depth continues.

Commercial

Subsequent to the end of the quarter, Neometals announced that its wholly
owned subsidiary Australian Titanium Pty Ltd was unable to advance from
offtake term sheet(( 10  (#_ftn10) )) to binding take or pay offtake agreement
with Jiuxing Titanium Materials Co ("Jiuxing"). The parties were unable to
agree mutually acceptable terms in relation to offtake and equity funding.
Regrettably, the broader macroeconomic backdrop has required Jiuxing to adjust
its production plans and shelve further Barrambie related activities. The
Company is continuing its engagement with third-party titanium producers and
mining services companies in relation to offtake, equity investment and
contract mine-to-port solutions.

 

Corporate

In parallel with its evaluation and commercial activities, Neometals continues
to assess the optimal strategy to return Barrambie value to shareholders.

Figure 15: Barrambie Indicative Timeline

Corporate

FINANCIAL

Hannans Limited (ASX:HNR) (Hannans) (Yilgarn Nickel/Lithium/Gold/Battery
Recycling)

As at 30 September 2023 Neometals held 879,812,014 ordinary fully paid shares
(~26% of the issued capital) in Hannans on an undiluted basis. Hannans holds
exclusive technology licences to Neometals' original LIB Recycling Technology
in Italy and the Balkans, a non-exclusive licence in the United Kingdom and it
is earning a 50% interest in an exclusive licence for Scandinavia held by
Critical Metals.

Critical Metals Limited (Unlisted, Scandinavian Lithium/Cobalt/Base Metals)

Neometals holds ~18.4% of unlisted public company Critical Metals Ltd, a
company which holds an exclusive licence to Neometals' original LIB Recycling
Technology in Scandinavia and 72.5% interest in RISAB which is developing VRP1
and VRP2.

Finances (unaudited)

Cash and term deposits on hand as of 30 September 2023 totalled $14.2 million,
including $0.2 million in restricted use term deposits supporting contractual
obligations. The Company has net receivables of $1.1 million and investments
totalling $22.7 million.

Related Party payments for the quarter outlined in the ASX Appendix 5B
released contemporaneously at section 6.1 total $425,625 and are made up of
Director fees and superannuation.

Issued Capital

The total number of shares on issue as at 30 September 2023 was 553,307,937.

Authorised on behalf of Neometals by Christopher Reed, Managing Director.

 

ENDS

 

For more information, please contact:

 

 Neometals Ltd
 Chris Reed, Managing Director & Chief Executive Officer       +61 8 9322 1182
 Jeremy McManus, General Manager - IP & IR                     +61 8 9322 1182

 Cavendish Securities plc - NOMAD & Joint Broker
 Neil McDonald                                                +44 (0)131 220 9771
 Peter Lynch                                                  +44 (0)131 220 9772
 Adam Rae                                                     +44 (0)131 220 9778

 RBC Capital Markets - Joint Broker                           +44 (0) 20 7653 4000
 Paul Betts
 Jamil Miah

 Camarco PR                                                   + 44(0) 20 3 757 4980
 Gordon Poole
 Emily Hall
 Lily Pettifar

 

About Neometals

Neometals has developed and is commercialising three environmentally-friendly
processing technologies that produce critical and strategic battery materials
at lowest quartile costs with minimal carbon footprint.

Through strong industry partnerships, Neometals is demonstrating the economic
and environmental benefits of sustainably producing lithium, nickel, cobalt
and vanadium from lithium-ion battery recycling and steel waste recovery. This
reduces the reliance on traditional mine-based supply chains and creating more
resilient, circular supply to support the energy transition.

The Company's three core business units are exploiting the technologies under
principal, joint venture and licensing business models:

 

·      Lithium-ion Battery ("LiB") Recycling (50% technology) -
Commercialisation via Primobius GmbH JV (NMT 50% equity). All plants built by
Primobius' co-owner (SMS group 50% equity), a 150-year-old German plant
builder. Providing recycling service as principal in Germany and commenced
plant supply and licensing activities as technology partner to Mercedes-Benz.
Primobius targeting first commercial 50tpd plant offer to Canadian company
Stelco in the DecQ 2023;

·      Lithium Chemicals (70% technology) - Commercialising patented
ELi™ electrolysis process, co-owned 30% by Mineral Resources Ltd, to produce
battery quality lithium hydroxide from brine and/or hard-rock feedstocks at
lowest quartile operating costs. Co-funding Pilot Plant trials in 2023 with
planned Demonstration Plant trials and evaluation studies in 2024 for
potential 25,000tpa LiOH operation in Portugal under a 50:50 JV with related
entity to Bondalti, Portugal's largest chemical company; and

·      Vanadium Recovery (100% technology) - aiming to enable
sustainable production of high-purity vanadium pentoxide from processing of
steelmaking by-product ("Slag") at lowest-quartile operating cost. Targeting
partnerships with steel makers and participants in the vanadium chemical value
chain under a low risk / low capex technology licensing business model.

 

For further information visit www.neometals.com.au
(http://www.neometals.com.au/)

 

 

APPENDIX

Appendix 1: Global Resource

Table 3: Barrambie Mineral Resource Estimate, April 2018*

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Appendix 2: Tenement Interests

As at 30 September 2023, the Company has an interest in the following projects
and tenements in Western Australia.

 Project Name          Licence Name  Beneficial Interest  Status
 Barrambie             M57/173-I     100%                 Live
 Barrambie             E57/769-I     100%                 Live
 Barrambie             E57/770-I     100%                 Live
 Barrambie             E57/1041-I    100%                 Live
 Barrambie             E57/1220      100%                 Pending
 Barrambie             E57/1244      100%                 Pending
 Barrambie             E57/1245      100%                 Pending
 Barrambie             E57/1379      100%                 Pending
 Barrambie             E57/1401      100%                 Pending
 Barrambie             E20/1037      100%                 Pending
 Barrambie             L57/0030      100%                 Live
 Barrambie             L57/0064      100%                 Pending
 Barrambie             L57/0065      100%                 Pending
 Barrambie             L57/0066      100%                 Pending
 Barrambie             L20/0055      100%                 Live
 Barrambie             L20/0080      100%                 Live
 Barrambie             L20/0081      100%                 Live
 Yellowdine            E77/2809      100%                 Pending
 Queen Victoria Rocks  E15/1416-I    100%                 Live

 

 

Changes in interests in mining tenements Interests in mining tenements
acquired or increased

 Project Name  Licence Name  Acquired or increased
 Barrambie     E57/1401      Application

 

Interests in mining tenements relinquished, reduced, or lapsed

 Project Name  Licence Name  Relinquished, reduced, or lapsed
 Barrambie     E20/1030      Withdrawal

 

 1  (for full details refer to Neometals ASX announcement headlined
"Cooperation Agreement with Mercedes Benz" released on 13(th) May 2022)

 2  (#_ftnref2) (for full details refer to Neometals ASX announcement
headlined "Battery Recycling - Binding Agreements with Stelco for NA" released
on 31st December 2021)

 3  (#_ftnref3) Black Mass quality is as produced from a Primobius Spoke.

 4  (#_ftnref4) Based on NMC 622/BM 1 feed chemistry.

 5  (#_ftnref5) Hub CapEx and OpEx cost estimates are denominated in Euros and
USD using an exchange rate of 1 Euro: 1.1063 US$ (Reserve Bank of Australia
(RBA) 27/7/2023).

 6  (#_ftnref6) German 12-month inflation: 6.4% (Source: DEstatis,
https://www.destatis.de/EN/Themes/Economy/Prices/Consumer-Price-Index/_node.html
(https://www.destatis.de/EN/Themes/Economy/Prices/Consumer-Price-Index/_node.html)
). and September 2022 €/US$ F/X 1:1 (source RBC
(https://apps.royalbank.com/apps/foreign-exchange-calculator
(https://apps.royalbank.com/apps/foreign-exchange-calculator) )

 

Note figures in table 1 above relating to the Spoke have been adjusted from
the original ASX Announcement in 2022 to dollars of today (for full details
refer to Neometals ASX announcement titled "Cooperation Agreement with
Mercedes-Benz" released on 13 May 2022.

7 (for full details refer to Neometals ASX announcement headlined "Lithium
Chemicals Co-operation Update" released on 3(rd) October 2023).

 8  (#_ftnref8) (for full details refer to Neometals ASX announcement
headlined "Vanadium Recovery Project Delivers Strong feasibility Results"
released on 8(th) March 2023).

 9  (#_ftnref9) (for full details refer to ASX announcement headlined
"Barrambie Project - Mineral Resource Update
(https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2995-01971759-6A879871?access_token=83ff96335c2d45a094df02a206a39ff4)
" released on 17 April 2018 and Table 3 (Appendix 1)

 10  (#_ftnref10) For further details see Neometals announcement headlined
"Barrambie Offtake Update" dated 2nd October 2023

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